Chinese Consumers Are Beginning To Shop More At Home. What Has Changed Us?

The devaluation of the renminbi and recent terrorist attacks in Europe also prevented Chinese from traveling overseas and promoted the sale of luxury goods in China.

As the Chinese government levies taxes on goods purchased overseas and some luxury brands reduce their selling prices in China to close their overseas prices, sales of high-end brands such as Lifeng group, Boboli and Louis Weedon group show a rapid growth in mainland China.

As the world's top buyer of high-end goods, Chinese consumption changes are an opportunity for luxury brands to sell in China, but they pose a threat to their business elsewhere.

The global personal luxury industry is worth 267 billion US dollars.

In recent years, Beijing has taken measures to bring consumption and taxes back to China.

In 2015 and early 2016, the government lowered import tariffs on goods including skin care products, shoes and clothing.

In April last year, China increased the tax rate on cross-border purchases of goods.

Zipphi recently bought a Saint Laurent handbag at a high-end store in Beijing at a price of $1600, which is close to overseas.

"The price gap has narrowed," she said.

The advantage of luxury stores in China is more and more obvious. "

According to Bruno Rana, a Shanghai partner of Bain consulting company, the sales of personal luxury goods in mainland China increased by 4% in 2016, and this year's growth rate will be even faster.

With the Louis Weedon group's sales soaring in the second half of 2016, chief executive Bernard Arnaud of the company said at the end of January:

Consumption returns to mainland China.

The peak price group attributed its growth in mainland China to the "fair pricing policy" introduced in 2015, that is, unified pricing around the world before considering taxes and tariffs in different countries.

The company's jewelry, watches and accessories brands include Dunhill and Cartire.

but

The gap still exists.

A 2016 L2 Inc study found that Louis Weedon products purchased by Chinese consumers were still 25% more expensive than those in other parts of the world.

In this regard, Louis Weedon group declined to comment.

"Luxury brands are trying to balance prices, maximizing profits from Chinese consumers," said Danielle Bailey, head of Asia Pacific Research at L2 Inc.

In recent years, many brands have been overextended in China, but because of weak demand, some brands have closed stores or abandoned new stores.

But Ruka Solca, head of luxury banking in Paris's securities and banking division, said that if luxury consumption continues to recover, high-end brands may consider investing in the mainland again.

Last October, when the Louis Weedon group called Chinese people on the mainland and elsewhere.

To boost sales growth so far this year, Jacques Guilloni, chief financial officer of the company, warned that the increase in Chinese purchases may be short-lived.

Andrea Cassavecchia, head of Italy handmade shoes luxury brand Santoni, said that although Chinese disposable income is expected to grow, not everyone can go abroad. For luxury brands, attracting domestic consumers is very important.

"China is a challenging market, but it has potential," he added.

China is a golden treasure. "

According to casablya, China will become the second largest overseas Santoni market by 2020, next to the US.

Shoppers are queuing up for shopping in front of a luxury brand.

The small town of Florence, located in Wuqing District, Tianjin, has more than 180 luxury brands, offering a variety of shopping discounts, attracting shoppers from Beijing, Tianjin and Hebei provinces. Some luxury discount stores even lined up shopping queues.

For more information, please pay attention to the world clothing shoes and hats and Internet cafes.